Most of my income plays center around U.S. companies, but one other economy is looking especially promising right now. So, I’m going south of the border for our next high-yield opportunity. When the rest of the emerging markets are trying to work through a commodity-related slump, the Mexican economy will grow by 2.7% this year, with GDP expected to clip 3.7% for 2015. Mexico is the second-largest economy in Latin America — and after the Mexican peso crisis in 1994, the country returned to steady growth; from 1996 to 2012, GDP expanded at an average quarter-over-quarter rate of 0.76%.
Mexico Fund ETF (MXF) is a closed-end fund that trades on the New York Stock Exchange and has existed since 1981 with the same management team in place since its inception. The fund holds 29 stocks, all with a phenomenally low cost basis that supports the managed distribution, which is paid out almost entirely from long-term capital gains. At present, the managed annual distribution of $2.86 per share represents a hefty current yield of 10.9%.